Gender, Parental Status, and the Wage Premium in Finance
Ken-Hou Lin1, Megan Tobias Neely1
1The University of Texas at Austin, USA.
Abstract:
Previous research documents a growing wage premium for elite financial workers since the 1980s. A second line of research finds substantial gender disparities in earnings and career mobility among elite financial workers. Yet little is known about whether women in finance still receive a wage premium compared with their nonfinance counterparts. In addition, few studies examine whether similar gender disparities exist among nonelite financial workers. This article examines how the wage premium for working in the financial sector varies by gender and parental status across the wage distribution. We report that women earn a greater wage premium than men in low-wage financial jobs, while almost all of the increase in wages in high finance is captured by elite men, particularly fathers. Consequently, the financial sector simultaneously exacerbates and mitigates gender inequalities at different locations of the labor market. Our findings highlight the significance of institutional context in amplifying and attenuating the reward and penalty associated with gender and parental status.
Related Concept Videos
Stereotypes, Prejudice, and Discrimination
Two-Way ANOVA
The two-way ANOVA analysis initially begins by stating the null hypothesis that there is an interaction effect between the two factors of a dataset. This effect can be visualized using line segments formed by joining the...
Socioemotional Experience and Gender Development
Stereotype Threat and Self-fulfilling Prophecies
Confirmation Biases
Factorial Design


